<PAGE> 1
FORM 8-K
--------
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
CURRENT REPORT
--------------
Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
Date of Report (date of earliest event Reported) October 25, 1995
-----------------
THE COLUMBIA GAS SYSTEM, INC.
-----------------------------
(Exact name of registrant as specified in its charter)
Delaware 1-1098 13-1594808
- ------------------------ -------- -------------
(State of other jurisdiction (Commission (IRS Employer
of incorporation) File Number) Identification No.)
20 Montchanin Road, Wilmington, Delaware 19807
----------------------------------------------
(Address of principal executive offices)
Registrant's telephone number, including area code (302) 429-5000
--------------
<PAGE> 2
Item 5. Other Events
Information contained in a News Release dated October 23, 1995, is
incorporated herein by reference.
<PAGE> 3
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934,
the Registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
The Columbia Gas System, Inc.
-----------------------------
(Registrant)
By /s/ R. E. Lowe
------------------------
Vice President &
Controller
Date: October 25, 1995
<PAGE> 4
Contacts: Media -
H. W. Chaddock (302) 429-5261
W. R. McLaughlin (302) 429-5443
Analysts - T. L. Hughes (302) 429-5363
K. P. Murphy (302) 429-5471
FOR IMMEDIATE RELEASE October 25, 1995
COLUMBIA GAS SYSTEM ANNOUNCES INTENT TO SELL
SOUTHWEST EXPLORATION AND DEVELOPMENT SUBSIDIARY
WILMINGTON, DEL. -- The Columbia Gas System, Inc., (NYSE: CG)
announced today its intent to sell Columbia Gas Development Corporation, its
wholly-owned southwest U.S. oil and gas exploration and production subsidiary.
Columbia Gas Development, headquartered in Houston, Texas, has in
excess of 200 billion cubic feet equivalent of proved oil and natural gas
reserves located in the Gulf of Mexico and on-shore continental United States.
"With innovations like market hubs, futures trading and the
application of information technology in natural gas markets, the strategic
value to Columbia of drilling for oil and gas in the Southwest has diminished,"
said Oliver G. "Rick" Richard III, Chairman and CEO. "We would rather use our
capital in the future to expand the use of these technologies and new market
mechanisms to meet our customers' ever-diversifying needs."
Columbia expects to emerge from bankruptcy by the end the year. "As
Columbia emerges from bankruptcy, we have an opportunity to redefine ourselves
strategically. We are employing value-added criteria to assist us in this
process. Southwest oil and gas exploration doesn't serve our customer base as
well as other priorities. Consequently, Columbia needs to focus its energies
and capital expenditures elsewhere."
Columbia does not expect to leave the E & P business entirely since
it will retain ownership of Columbia Natural Resources, Inc., an exploration
and production company located in the Appalachian area. "Columbia Natural
Resources' production is much closer to our customers and is spread across our
principal pipeline company's service territory," noted Richard. "We see a
better strategic fit between Columbia Natural Resources and the rest of
Columbia's assets."
<PAGE> 5
-2-
Columbia Gas has retained the investment banking firm of Salomon
Brothers Inc. to advise it in connection with the possible sale.
The Columbia Gas System, Inc., is one of the nation's largest natural
gas systems. Its subsidiaries are engaged in all aspects of the natural gas
market, from production through the storage, transmission, and distribution
of natural gas, as well as the generation of electricity. Columbia Gas serves,
directly or indirectly, more than eight million energy users in 15 states and
the District of Columbia.
